AFPCES (1)

June 7, 2021 FISCAL INCENTIVES REVIEW BOARD RESOLUTION NO. 008-21 SUBJECT MATTER : AFPCES (1) WHEREAS, commissary services and post exchange facilities are intended to augment the benefits of military personnel in recognition of their work in national security and defense; WHEREAS, such services and facilities are recognized as integral adjuncts of the military sector on a global basis; WHEREAS, there is a need to ensure that the benefits of these services and facilities are extended only to its intended beneficiaries; WHEREAS, to ensure that said commissary services and post exchange facilities would achieve its objective, the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) has applied for tax subsidy in the amount of P368,211,211.91 to cover the value-added tax (VAT) and excise taxes due on its purchases and subsequent sale to its intended beneficiaries for Calendar Year 2021; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application of the AFPCES for tax subsidy in the amount of THREE HUNDRED SIXTY-EIGHT MILLION TWO HUNDRED ELEVEN THOUSAND TWO HUNDRED ELEVEN AND 91/100 PESOS (P368,211,211.91) only, representing the VAT on general merchandise and other petroleum, oil and lubricant (POL) products, and excise tax on gasoline and diesel broken down as follows: CAIHTE Coverage Amount in Pesos Ratio to Total (%) VAT on general merchandise (to include pharmaceuticals, re-enlistment clothing allowance, tires, batteries and accessories, lubricants) and other POL products 329,811,211.91 89.57 Excise tax on petroleum products 38,400,000.00 10.43 Gasoline 26,880,000.00 7.30 Diesel 11,520,000.00 3.13 Total 368,211,211.91 100.00 Provided , that the AFPCES shall submit to the FIRB: (1) details of its system to ensure that commissary privileges are confined solely to its intended beneficiaries, including the following: (a) breakdown of customers by type/category; (b) quantity and purchase limits; and (c) identification requirements for customers; (2) results of the annual audit of its operations by the Commission on Audit or a reliable independent auditor; and (3) mark on all items entitled to tax subsidy the words "Tax Subsidized by the Philippine Government. Not for Resale": Provided, further , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of Republic Act No. 11518 or the 2021 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93. (SGD.) ANTONETTE C. TIONKO Undersecretary Department of Finance (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) RAFAELITA M. ALDABA Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Undersecretary National Economic and Development Authority (SGD.) MARISSA O. CABREROS Deputy Commissioner Bureau of Internal Revenue (SGD.) ATTY. VENER S. BAQUIRAN Deputy Commissioner Bureau of Customs